Client has W-2 with no Gross wages subject to FIT & SIT

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Live in Provider and Waiver Personal Care Services-under IRS Notice 2014-7 wages received by WPCS providers who live with the recipient of those services are not considered part of gross income for FIT purposes. I entered 0 wages, 0 FIT and 0 SIT, SS wages and medicare wages were subject to taxes which is OK. Lacerte included this in critical diagnostics that Wages for FIT is missing. Can anyone tell me what to do? I would like to E-file the returns. There must be some tax preparers who have the same issues. Please tell me what to do?

Lacerte Tax

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T

TaxGuyBillAnswer

If the W-2 actually shows $0 (or blank) in Box 1, in most cases you can just not enter the W-2.

The only exception I can think of is if the taxpayer is over the Social Security wage limit, but I suspect that would almost never happen.

T

TaxGuyBillAnswer

If the W-2 actually shows $0 (or blank) in Box 1, in most cases you can just not enter the W-2.

The only exception I can think of is if the taxpayer is over the Social Security wage limit, but I suspect that would almost never happen.

itonewbie

Level 15

If your client received a W-2 reporting wages that could be excluded under Notice 2014-7 and your client is not able to obtain a W-2 to eradicate the excludable income, you should report the wages in Box 1 and Box 16 as usual but enter the amount that should have been excluded on Line 21 as a negative number with a reference to "Notice 2014-7".

---------------------------------------------------------------------------------Still an AllStar

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